Is the real estate broker commission rebate legal in New York?
Yes. Sharing commissions with Sellers and Buyers is legal. The New York State Department of State (the “DOS”) has consistently taken the position that New York real estate brokers may share a portion of their commission with a purchaser, seller, landlord or tenant in such transaction (a “Party to the Transaction”). In June 2013, Section 442 of New York’s Real Property Law was amended to carve out rebates from the provision which otherwise prohibits splitting commissions with an unlicensed broker. This amendment codified what was already deemed a legal practice by the Department of State and the Attorney General’s office, which had each previously issued opinions, letters and/or decisions agreeing that a licensed broker could offer rebates to their clients as an incentive for using its services.
Further reading on commission sharing in the media:
As a buyer, if I engage with MyFeeSimple, will I have to pay any broker fees?
No. MyFeeSimple passes half of the buyer agent's commission received from the seller to the buyer upon closing.
Is MyFeeSimple a real estate brokerage? Do I need an agent?
MyFeeSimple is a licensed brokerage in the state of New York. Use us as your real estate agent to buy any home in New York and we’ll refund you half of the buyer agent’s commission upon closing.
What if I need advice?
Our 24/7 expert support staff can answer any questions you have.
Can MyFeeSimple help me sell my home?
At this time we’re focused on improving the home buying experience and cannot assist in selling homes. We hope to have a better solution for New York based home sellers in the future.
Isn't the commission paid for by the seller?
Yes and the seller accounts for that cost in the home price.
When do I receive half of the broker agent's commission?
Our fee comes out of the commission paid by the seller at closing. Once we receive the full buyer agent's commission from the seller, we can give you half of the commission right away.
Is my offer going to get accepted if I work with MyFeeSimple?
Sell side agents are incentivized to advise their clients to take the best offer. They are also required by New York State Real Estate law to work with us.
How does my offer get submitted to the sell-side agent?
Most sell-side agents prefer to receive our formal offer form. We also call the listing agent on phone to discuss each offer we submit.
How do you handle the negotiation process?
A MyFeeSimple agent will work closely with you to guide you through the negotiation process. We usually review comps with our clients to prepare the right counter offer before engaging the listing agent.
How do you handle the closing process, e.g. lawyer referrals, inspections, appraisals, etc.?
We work closely with our clients at each step of the process and are able to refer lawyers, inspectors and advise on appraisal results and what comes up along the way